Abstract in another language

The software industry bemoans billions of Euros in damages due to copyright piracy. In connection with this, some demand that the Internet be monitored more efficiently in order to limit the increasing dissemination of pirate copies. In addition, many software manufacturers demand that the existing copyright should be tightened. This is in stark contrast to the policy of individual software producers that do without technical protection mechanisms and thus allow for the dissemination of their software as pirate copies. Hence, the reasons for copyright infringements are to be found in the behaviour of software users as well as of software producers, as the former use pirate copies and the latter allow for this. Institutional economic analysis has, at its core, the presentation of the causes and/or incentives that are responsible for the fact that rules are breached by software consumers and software manufacturers alike. It also identifies solutions to improve the situation of software manufacturers. It demonstrates that this is not “just” about protecting intellectual property by preventing the dissemination and use of pirate copies. In fact, there is a close link between software and network externalities and compatibility standards which promise large profits to software manufacturers but also contain a high risk of failure. Therefore, property right issues cannot be considered apart from the market situation. Software manufacturers must protect their property from software pirates on the one hand and, at the same time, secure their competitive edge through adequate competitive strategies.